U.S. patent application number 10/062801 was filed with the patent office on 2003-07-31 for industrial equipment cost estimation system and method.
Invention is credited to McElhinny, Mark D., Razum, Joseph C., Sharma, Sanjay Kumar, Williams, Ronald Lee.
Application Number | 20030144953 10/062801 |
Document ID | / |
Family ID | 27610354 |
Filed Date | 2003-07-31 |
United States Patent
Application |
20030144953 |
Kind Code |
A1 |
Razum, Joseph C. ; et
al. |
July 31, 2003 |
Industrial equipment cost estimation system and method
Abstract
A total cost of ownership model is input by a series of
graphical user interface pages. The model may include
identification of specific tasks, including sub-activities and
activities. Data sets are generated by progressively inputting
costs, time, labor rates, and other key information for the various
activities and sub-activities. Total cost of ownership calculations
are made and the data may be rapidly and interactively displayed in
graphical formats, tabulated formats, flow charts, and so forth.
The tool permits the evaluation of both existing and alternative or
solution scenarios for equipment ownership and servicing.
Inventors: |
Razum, Joseph C.;
(Greenville, SC) ; Sharma, Sanjay Kumar;
(Greenville, SC) ; McElhinny, Mark D.;
(Simpsonville, SC) ; Williams, Ronald Lee;
(Anderson, SC) |
Correspondence
Address: |
Alexander M. Gerasimow
Allen-Bradley Company, LLC
1201 South Second Street
Milwaukee
WI
53204-2496
US
|
Family ID: |
27610354 |
Appl. No.: |
10/062801 |
Filed: |
January 31, 2002 |
Current U.S.
Class: |
705/40 |
Current CPC
Class: |
G06Q 20/102 20130101;
Y02P 90/86 20151101; G06Q 10/06 20130101; G06Q 40/02 20130101; Y02P
90/80 20151101 |
Class at
Publication: |
705/40 |
International
Class: |
G06F 017/60 |
Claims
What is claimed is:
1. A method for analyzing costs associated with an industrial
control and monitoring system, the method comprising: defining
tasks performed in servicing the system; computing costs of
servicing the system based upon the tasks, the costs including
costs in a driver category; analyzing the computed costs; and
automatically generating a graphical display of total costs of
operations based upon the defined tasks and computed costs.
2. The method of claim 1, wherein the tasks are defined in specific
classifications of activities.
3. The method of claim 1, wherein the tasks are user defined via a
graphical user interface.
4. The method of claim 1, wherein the costs are computed over a
predetermined time period.
5. The method of claim 1, wherein the graphical display includes a
chart of costs for servicing displayed in categories, including the
driver category.
6. The method of claim 1, further comprising automatically
generating a process flow chart of the tasks and costs associated
with the tasks.
7. The method of claim 1, wherein the costs are computed for an
existing servicing data set and for a solution servicing data
set.
8. The method of claim 7, wherein the graphical display illustrates
a comparison between costs computed for the existing servicing data
set and the solution servicing data set.
9. A method for analyzing total costs of ownership of industrial
equipment, the system comprising: prompting user input of system
descriptive data; prompting user input of tasks performed ownership
and servicing of industrial equipment; prompting user input of a
cost data set for the tasks; computing total costs of ownership
data based upon the tasks and the cost data set; and generating and
displaying a graphical representation of computed total costs of
ownership.
10. The method of claim 9, wherein the step of prompting user input
of a costs data set includes prompting input of an existing costs
data set and of a solution costs data set.
11. The method of claim 10, wherein the step of computing total
costs of ownership data includes computing data based on the
existing costs data set and computing data based on the solution
costs data set.
12. The method of claim 11, wherein the step of generating and
displaying the graphical representation includes displaying a
comparison of cost data computed based on the existing costs data
and cost data computed based on the solution costs data.
13. The method of claim 9, further comprising displaying a flow
chart of tasks input by the user.
14. A method for analyzing total costs of a user system, the method
comprising: defining activities and subactivities encountered
during at least a portion of a useful life of the system;
identifying cost parameters for each of the activities and
subactivities; determining at least two different cost models based
upon the activities and subactivities and upon the cost parameters;
and generating a user viewable page summarizing the cost
models.
15. The method of claim 14, wherein the activities and
subactivities are defined via a user viewable interface page.
16. The method of claim 14, wherein the cost parameters include
costs of installation of the system.
17. The method of claim 14, wherein the cost parameters include
costs of maintaining the system.
18. The method of claim 14, wherein the cost parameters include
costs of labor.
19. The method of claim 14, wherein the at least two different cost
models include a model based upon an existing system configuration
and a model based upon an alternative system configuration.
20. The method of claim 14, wherein the user viewable page includes
a flow chart summarizing the activities and subactivities.
21. The method of claim 14, wherein the user viewable page includes
a graphical representation of costs.
22. A system for analyzing costs, the system comprising: a
plurality of user interface pages adapted to prompt input of task
data and cost data based upon the tasks; an analysis module
configured to receive the task data and the cost data and to
compute costs of performing the tasks in accordance with at least
two different cost models; and an output module configured to
generate a graphical representation of the tasks and costs computed
by the analysis module.
23. The system of claim 22, wherein the interface pages are
displayed on a user workstation.
24. The system of claim 22, wherein user interface pages are
configured to permit user identification of the tasks.
25. The system of claim 22, wherein the analysis module is adapted
to analyze costs of installation of equipment.
26. The system of claim 22, wherein the analysis module is adapted
to analyze costs of maintaining equipment.
27. The system of claim 22, wherein the analysis module is adapted
to analyze costs of labor.
28. The system of claim 22, wherein the at least two different cost
models include a model based upon an existing machine system
configuration and a model based upon an alternative machine system
configuration.
29. The system of claim 22, wherein the graphical representation
includes a flow chart summarizing the tasks.
30. The system of claim 22, wherein the graphical representation
includes a bar chart of costs.
Description
BACKGROUND OF THE INVENTION
[0001] The present invention relates generally to the field of
industrial and similar equipment and systems. More particularly,
the invention relates to a technique for analyzing total costs of
ownership and servicing of such equipment.
[0002] In the field of industrial equipment and systems a wide
range of costs and expenditures may be encountered over the life of
systems and subsystems. Depending upon the particular application,
for example, systems installed in a factory, power plant, mine,
material handling applications, storage warehouse, and so forth,
may include original equipment or a combination of original
equipment and components that may be retrofit or replaced over
time. In either event, initial installation of systems and
subsystems entails significant costs which are amortized over the
useful life of the equipment. In addition to initial costs of the
equipment and installation, industrial systems undergo regular and
non-scheduled servicing. Regular servicing may include issues as
simple as lubrication, verification of the state of the equipment,
and so forth. Non-scheduled servicing may include items that are
periodically needed as systems inevitably, but unexpectedly
breakdown, both from natural problems with the equipment as well as
from accidents or climatic conditions. In all of these cases, the
costs associated with maintaining and servicing the equipment must
be added to the initial costs to obtain a total cost of
ownership.
[0003] A difficulty in engineering, specifying, and selling new and
replacement systems, components and services related to such
systems, entails accurately assessing the costs associated with
ownership. While the initial costs and installation expenses can be
generally accurately estimated, it is much more difficult to
estimate the regular costs of ownership associated with servicing.
In many industrial settings, for example, accurate records may
simply not be kept that include all of the details required to
evaluate the costs. Even where such records are kept, no
satisfactory tool is presently available to integrate such costs
with the initial costs of ownership in a meaningful manner that
provides engineers, designers, purchasing agents, and other
responsible personnel with information that should form the basis
of an informed decision.
[0004] In comparing various alternatives for purchase and servicing
of industrial equipment, managers may need to be informed not only
of anticipated costs, but of various alternative management
approaches. By way of example, known historical costs may be
determined for specific systems or subsystems, while other, perhaps
reduced, cost structures may be available through the use of
alternative equipment, alternative servicing techniques, and so
forth. In particular, it is believed that there are many instances
in which higher initial costs for equipment may be more easily
justified in view of reduced maintenance or service costs when a
total cost of ownership model is used by the decision maker. Again,
however, there is no satisfactory tool at present for interfacing
with users to access such information, presenting the information
in a meaningful manner, or comparing existing or historical
solutions with alternative solutions in a simple and meaningful
manner that emphasizes cost drivers and total cost of
ownership.
[0005] There is a need, therefore, for an improved approach to
evaluating total cost of ownership of equipment and systems in
industrial settings. There is a particular need for a technique
which can evaluate or estimate costs based upon historical
information for both existing and new systems.
SUMMARY OF THE INVENTION
[0006] The invention provides a novel technique for estimating
total costs of ownership designed to respond to such needs. The
technique may be employed in a wide range of settings, but is
particularly adapted to evaluation of equipment ownership and
maintenance costs in industrial settings. The type of equipment
evaluated may vary widely, and may include such systems as
production machinery, material handling machinery, automation
machinery, and so forth. The technique offers a simple tool which
can be used by sales personnel, management personnel, plant
personnel, or engineers and designers for comparing and evaluating
various options for equipment, both prior to installation and over
the life of systems and subsystems. The tool is conveniently based
upon a graphical user interface which may be provided in a resident
program, a program stored on a media device such as a compact disc,
or in a program which is interactively run.
[0007] In accordance with certain aspects of the technique, a user
is prompted to input data relating to and describing a system or
subsystem. Specific activities and sub-activities may be then
identified, including tasks performed in sub-activities. The data
sets descriptive of the tasks provide a basis for estimating costs.
The costs may include both the actual costs of equipment and parts,
the labor costs associated with preparation and installation of
equipment, and costs of running the equipment. The data sets may
also provide an indication of less direct costs, such as cost of
down time, cost of obtaining and installing spare parts, costs
associated with regular and unscheduled servicing, and so
forth.
[0008] In addition to costs of current programs, the tool may
facilitate calculation of similar cots of possible alternative
equipment and programs. Specifically, in a total cost of ownership
setting, the tool may be used to compare anticipated costs of
existing or contemplated systems with similar costs of alternative
systems, such as to determine the overall costs over time to
compliment the calculation of the initial costs of the systems.
[0009] The tool provides an automatic and rapid mechanism for
obtaining evaluation and feedback of the cost calculations. The
feedback may include a variety of graphical tools, such as
graphical displays of costs, particularly costs in a driver
category. The feedback may also include a graphical representation
of a flow chart for the particular activities, sub-activities,
tasks, and so forth along with their associated costs. Finally,
various detailed information may be provided to permit the decision
maker to evaluate the bases for the results and to verify the
foundation on which the costs are calculated.
BRIEF DESCRIPTION OF THE DRAWINGS
[0010] The foregoing and other advantages and features of the
invention will become apparent upon reading the following detailed
description and upon reference to the drawings in which:
[0011] FIG. 1 is a diagrammatical representation of a cost
evaluation system associated with an exemplary mechanical system in
a form of a conveyor;
[0012] FIG. 2 is a flow chart illustrating exemplary steps in logic
for prompting the input of data and evaluating the data for
presentation of costs associated with ownership or servicing of
equipment in a system of the type illustrated in FIG. 1;
[0013] FIG. 3 is a representation of an exemplary interface page
for inputting information for use in the process of FIG. 2;
[0014] FIG. 4 is a representation of a further interface page for
inputting cost driver category information;
[0015] FIG. 5 is an illustration of an exemplary interface page for
inputting details of a data set relating to activities,
sub-activities, and tasks associated with ownership or servicing of
equipment through a process of the type illustrated in FIG. 2;
[0016] FIG. 6 illustrates a further interface page for inputting
solution data for comparison purposes in conjunction with the data
input via the page of FIG. 5;
[0017] FIG. 7 is an exemplary interface page illustrating an
automatically generated flow chart for the exemplary system of FIG.
1;
[0018] FIG. 8 is an interface page illustrating automatic
generation of an exemplary graphical comparison of costs for the
system illustrated in FIG. 1; and
[0019] FIG. 9 is an exemplary detailed datasheet presented in an
interface page and illustrating the bases for the calculations made
in the exemplary analysis.
DETAILED DESCRIPTION OF SPECIFIC EMBODIMENTS
[0020] Turning now to the drawings, and referring first to FIG. 1,
a system 10 is generally illustrated as including a basic
mechanical system 12, and an associated analysis tool 28. As noted
above, while any desired system may be used for the analysis
purposes described herein, in the exemplary illustration of FIG. 1,
a simple mechanical system 12 is referred to. System 12 includes,
in this example, a conveyor 14 which is driven by a motor 16. Motor
16 drives a pulley 18 in rotation, and the pulley is supported on a
shaft and bearings 20. A further pulley 22 serves to support the
conveyor and is, in turn, supported by similar bearings 24 on a
shaft. A belt 26 is disposed on pulleys 18 and 22 and may serve to
transport material during use. Again, it should be noted that the
conveyor system used as a basis for the present exemplary
embodiment is simply a convenient example of a basic system. Other
systems may include both mechanical, electrical, electromagnetic,
computerized, or other systems. Similarly, the systems may be land
or sea based, and may include components at one or a wide range of
locations interacting directly or indirectly with one another.
[0021] Returning to FIG. 1, the analysis tool 28 is based upon
certain characteristics of the mechanical system 12 which may be
identified and summarized as indicated at reference numeral 30 in
FIG. 1. The characteristics might be grouped in accordance with
activities such as installation, as indicated at box 32. Such
activities may be further sub-divided in sub-activities as noted at
reference numeral 34. In the case of installation of a system 12,
for example, sub-activities may include purchase and shipment of
equipment, preparation of a site, installation of electrical and
mechanical support components at the site, installation of the
actual equipment, start-up of the equipment, and so forth. Other
activities may be defined in the characteristics as indicated at
reference numeral 36. In the example, the second activity may
include maintenance, and may be further sub-divided into
sub-activities 38. In the case of maintenance activities, such
sub-activities may include items such as lubrication, physical
inspection, replacement of parts on regular and non-scheduled
bases, down time for regular and non-scheduled maintenance and
servicing, costs of obtaining and shipping parts, costs of
maintaining inventories and managing such inventories, and so
forth.
[0022] The activities and sub-activities, as noted above, entail
costs. These costs may be more or less known, and more or less
apparent to management personnel based upon the manner in which
they are handled. For example, purchase costs may obviously be
traced to specific purchase orders or requisitions. Costs
associated with shipping and storing, as well as insurance and
similar costs may similarly tracked. Other costs will be less
obvious and much more difficult to track. For example, costs both
of new installations and of maintenance of installations may
include parts, salaries of service personnel, hidden costs in
maintaining and educating personnel, costs of down time, and so
forth. Such costs are evaluated in the present technique in a cost
identification module 40. More will be said of module 40 in the
description of a specific implementation. However, in general,
module 40 will include software running on a general purpose or
application specific computer or computers, for prompting a user to
input information relating to the activities, sub-activities,
tasks, costs, and so forth. The module 40 is linked to an analysis
module 42 which, again, will typically include appropriate
programming code in a general purpose or application specific
computer. The analysis module 42 generates cost computations based
upon the input data sets, and provides output for a presentation
module 44. The presentation module, too, may be part of an
application specific or general purpose computer program.
[0023] In general, the cost identification module, the analysis
module and the presentation module 44 may be a part of a single
computer program. The program may run on a single computer station,
such as station 46 illustrated in FIG. 1. Similarly, the computer
system may be a laptop or a similar portable station which can be
transported to a user location for interfacing with decision
makers. Output, generally designated by reference numeral 48 in
FIG. 1, may include graphical presentations of cost data computed
by the system, as well as flow charts, and similar useful feedback.
An interesting feature of the present technique is the ability to
automatically and rapidly generate presentations of cost
evaluations both for existing and alternative systems. The
presentations may take any useful form, but graphical presentations
of the data are preferred for their ability to simply and rapidly
focus decision makers and designers on cost drivers, and on the
consequences of specific investment and maintenance decisions on
the overall cost of ownership.
[0024] FIG. 2 represents exemplary steps in logic for inputting and
analyzing cost data in a system of the type illustrated in FIG. 1.
These steps are indicated generally by the reference numeral 50 in
FIG. 2. Through the following explanation, reference will be made
both to FIG. 2 and to the series of exemplary interface pages of
FIGS. 3-9. The interface pages are examples of those that might be
utilized to prompt, receive, and process data, as well as to select
desired presentations of data analysis and comparison.
[0025] The steps summarized in FIG. 2 begin at step 52 wherein
system descriptive data is input. As shown in FIG. 3, in an
exemplary interface page 80, a series of navigation tools may be
provided as indicated at reference numeral 82. Such tools permit
the user to navigate between the various screens or interface pages
described herein, as well as to store certain of the pages,
configuration data, analysis results, and so forth. The system
descriptive data is input via series of boxes or spaces labeled
84-102 in FIG. 3. Where appropriate the boxes may include drop-down
menus. In a present configuration illustrated in the Figure, the
descriptive data may include customer name, plant location, region
for a system or subsystem, an industry code, a sub-industry code,
and so forth. Blocks for this information are provided as indicated
at reference numerals 84-92. An additional block is provided at
numeral 94 for identifying a particular process under evaluation. A
particular application may be specified at block 96. A list of one
or more components may be identified at block 98, and specific
products and departments identified at blocks 100 and 102.
[0026] In accordance with the present technique, a particular cost
driver category may be selected. FIG. 4 indicates an interface page
for selection of such a driver category. As indicated at reference
numeral 106 of the page 104, a drop-down menu 108 may be provided
with a listing of such driver categories. The driver category
represents the particular cost category that is under evaluation
for comparison purposes. In the example the "operations" category
has been selected, and is used as the basis for the decision
making. Other cost categories may be provided such as maintenance,
procurement, and so forth. The driver category may entail different
or specialized cost evaluation algorithms, and may be crafted to
evoke specific information related to the time of costs generally
associated with that category. As indicated at block 110,
additional identification information may be provided for specific
product line activities under consideration.
[0027] Returning to FIG. 2, a series of steps identified by
reference numeral 54 entail selecting or input identifications of
specific activities, cost data, sub-activity data, schedule data,
and so forth. In the present embodiment all such data may be
considered as a data set. The data set includes specific lump
costs, periodic costs, scheduled costs, activities and rates of
costs per activity or per time period, and so forth. In all, the
information input at the series of steps 54 will be sufficient to
analyze and compile a total cost of ownership calculation for the
specific application, activities, sub-activities, tasks and over
the specific period in question.
[0028] As indicated at step 56, the process begins with selection
or input of an activity. The interface 112 of FIG. 5 illustrates
exemplary blocks or menus for prompting the input of such
information. As indicated at reference numeral 114, an activity may
be selected or input by the user. In this case, the "installation"
activity has been selected. As shown at block 58 in FIG. 2, cost or
scheduled data is then selected or input for the specific activity.
As shown at block 116, the user may be prompted on certain
activities to input a rate performing the activities, such as
number of occurrences per year. Where certain activities entail
down time or similar computations, the classification of such down
time may be input at block 118 and a percentage may be input at
block 120 for the down time calculation. At block 122 the
calculated value of unscheduled down time activities is input, and
a cost of such down time is input or estimated at block 124.
[0029] In addition to these specific activities, sub-activities may
be selected or input by the user. In general, the use of
sub-activities permits greater and more detailed analysis for
evaluation of the specific tasks entailed in the activity. In the
example illustrated, sub-activities include shut down of a
conveyor, obtaining a new bearing, obtaining tools for the bearing
removal, removal of the bearing, shaft preparation, and
installation of a new bearing. The sub-activities are grouped as
indicated at reference numeral 28, having been input at a block
126.
[0030] Once the sub-activities have been selected or input as
indicated at step 60 in FIG. 2, data descriptive of costs of such
activities is input or selected as indicated at step 62 of FIG. 2.
Returning to FIG. 5, blocks 132-134 prompt a user to identify labor
rates, employees associated with sub-activities, materials and
products, part numbers, costs, and time spent on specific
sub-activities. As will be appreciated by those skilled in the art,
such data is then used to compute the value of the individual
sub-activities for the total cost of ownership calculation. It
should be noted that in addition to the foregoing information, the
interface page 112 permits navigation to specific presentations
based upon the calculations made. Accordingly, in the illustrated
embodiment flow charts, solution data, bar charts, and so forth may
be selected from a menu 144. By appropriately navigating through
the various activities, and sub-activities identified by the user,
highly interactive and complete "snap-shots" may be input by the
user of specific processes. Again, the data may be generated based
upon anticipated or actual activity and sub-activity data.
Globally, such activities may be thought of as tasks which are
performed and costs entailed in ownership and servicing of
equipment. To the extent that the information is accurate and
complete, the total cost of ownership calculations may be made,
such as by multiplying labor rates times time value, times number
of occurrences, and summing the resulting computations.
[0031] The present system also permits comparison of a number of
different solutions for ownership scenarios. In particular, the
tool is well suited to comparing existing service programs with
upgraded or alternative service programs as indicated in the
interface page 146 of FIG. 6. As shown in FIG. 2, such pages may be
considered as solution data set pages as indicated at step 64 of
the process. In the illustrated example, the solution data set
interface page may be substantially identical to the page
illustrated in FIG. 5 for the existing activity and sub-activity
identification, but includes a column for section 148 for solution
data. The solution data may differ from the existing data in that
different or alternative products, parts, processes, and so forth
are utilized. To facilitate comparison, the existing data already
entered by the user for particular activities or sub-activities may
be displayed as shown in FIG. 6.
[0032] The present technique is adapted to automatically and
interactively generate presentations for the processes as indicated
in FIGS. 7-9. In a particularly useful aspect of the technique, a
flow chart of the specific process, application, and activity and
sub-activity categories is generated in real time as indicated in
FIG. 7. Such flow charts may be accessed by simply selecting a
create flow chart virtual button of the type shown in FIGS. 5 and
6. A resulting interface page 150 is displayed that includes a flow
chart 152. In a present embodiment, the flow chart is designed to
display a hierarchy of tasks from sub-activities 154 to activities
156. Decision blocks 158 may be included, such as for display of
down time costs versus no down time costs, with down time costs in
the present embodiment being displayed or called out at a block
160. All of the information is again linked to a cost driver
category as indicated at reference numeral 162. Finally, the
specific application and process are called out as shown at
reference numerals 164 and 166. A user may print, save, or
otherwise access the flow chart via one or more drop-down menus as
indicated at reference numeral 168. The flow charts again help to
identify the various activities and sub-activities input by the
user, and to verify that the input model is accurate and correct.
Moreover, where both existing and solution or alternative data sets
are provided, the flow chart may indicate one or both of these and
their associated costs.
[0033] As shown in FIG. 8, the present embodiment also permits
graphical representations of costs to be generated and displayed.
In particular, a cost bar chart is accessed by selection of one of
the virtual buttons at the bottom of the interface page. The
interface page then, referred to by reference numeral 170 in FIG.
8, provides a display 172 of the various costs involved in the
application input by the user. To render the presentation even more
meaningful, and to emphasize specific cost drivers, these may be
displayed in different manners as indicated for the operations cost
driver 174 in FIG. 8. Comparisons of existing and alternative or
solution costs may be particularly called out or aligned so as to
emphasize cost savings. Other cost driver categories may also be
displayed as indicated at reference numeral 176 as may a total cost
of ownership comparison. Again, such presentations are generated
automatically by the software based upon the collection of data
input by the user. It should also be noted that changes in the
input information are automatically reflected in the presentations
made in both the flow chart of FIG. 7 and in the comparison and
total bar chart of FIG. 8.
[0034] Following a creation of graphical representations as
indicated at step 72 in FIG. 2, data sheets may be created as
indicated at step 76. An exemplary data sheet is shown in FIG. 9.
The data sheet displayed in a page 178 includes a chart 180 which
simply reflects the various information input by the user. Because
the graphical representation may require or call for certain
explanatory notes, such raw data simulations may be desirable. In
all of the cases of output creation summarized in FIG. 2, the
actual output whether in the form of a flow chart 70, a graphical
representation 74 or a tabulated presentation 78 may be stored,
printed, transmitted to remote locations, and so forth as desired
by the user.
[0035] It has been found that the present tool permits rapid and
interactive identification of the various cost categories in
equipment ownership, maintenance, servicing, and repair. In
particular, the tool is well-suited for cost justification in new
and retrofitted purchases and servicing decisions. Because the
total cost of ownership is the basis for the calculations, and
because certain cost drivers may be the focus of the evaluation,
rapid and interactive presentation of both the process flow and
costs summary are particularly useful to decision making.
[0036] While the invention may be susceptible to various
modifications and alternative forms, specific embodiments have been
shown by way of example in the drawings and have been described in
detail herein. However, it should be understood that the invention
is not intended to be limited to the particular forms disclosed.
Rather, the invention is to cover all modifications, equivalents,
and alternatives falling within the spirit and scope of the
invention as defined by the following appended claims.
* * * * *